UBS is reportedly suspending its plans to form a new fund unit in China after deciding to maintain ownership of a joint venture from its takeover of Credit Suisse.
UBS is suspending plans to establish a new fund unit in China, according to a «Reuters» report citing unnamed sources. It may take more than a year to make a final decision on the matter, causing uncertainty for nearly 60 staff.
The plans were suspended due to existing regulations that do not allow any company to own more than two fund management firms in mainland China.
In addition to a 49 percent stake in UBS SDIC Fund Management, the Swiss bank now also has a 20 percent stake in ICBC Credit Suisse Asset Management following a takeover. As of the end of 2022, Beijing-headquartered ICBC Credit Suisse had 1.72 trillion yuan ($240 billion) in assets under management with close to 2.7 billion yuan in net profit last year.
